S&P’s Affirms Harleysville Group Ratings

August 20, 2002

Standard & Poor’s has withdrawn its public information counterparty credit and financial strength ratings on various Pennsylvania-based Harleysville insurance operating companies after determining that there is not significant market interest in maintaining the rating opinion.

At the same time, Standard & Poor’s said that it affirmed its triple-‘B’-plus counterparty credit and senior debt ratings on Harleysville Group Inc., which is a 54 percent owned subsidiary of Harleysville Mutual Insurance Co. The outlook is stable.

“The ratings on the operating companies could be reinstated in the future if market interest warrants,” Standard & Poor’s credit analyst Darryl Brooks said.

HGI, a provider of insurance products and services for small businesses and individuals, is a holding company for nine regional property/casualty insurance companies operating in 32 eastern and midwestern states. The Harleysville organization is represented by about 1,900 local independent agencies.